Does this really hold up? I don't think so. I remember reading that under the law that an LLC that just holds property for the purpose of subverting re-assessment upon transfer, is not legal (or the reassessment happens when the LLC is sold, no free ride under prop 13). I would also think this doesn't work or every piece of property in California would just be owned by a separate company. If it does work, I'd like to know so I can set up my LLC for my house when I want to sell it. Reducing the property tax by $1000 a month should be worth quite a bit in this low interest environment.